This article was published on August 27, 2013. The investment strategy and opinions expressed in this article are those of the author and do not necessarily reflect those of the publisher, staff or editors at Uncommon Wisdom Daily or Weiss Research.

Washington Whiplash Set to Drive Gold, Oil Higher!

Washington, D.C., is at war with itself. Not surprised? Yes, politicians have always squabbled. The difference now is that the stakes are much higher — and no one wants to face reality.

This is sad, but not for the reason you may think. It’s sad because reality is getting better every day.

The U.S. stock market has more than doubled since its 2009 low. The federal deficit is falling, the economy is growing and even the housing market is on the rebound.

Is growth still too slow and unemployment still too high? Yes.

Are the government and the Federal Reserve still salting our wounds with their misguided policies? Yes, absolutely!

Yet the astonishing fact is the American people are overcoming all obstacles to bring our nation back. Our economy is sick but our spirit is strong. We will get through this.

Many don’t see this improvement. Even at the top levels of our legislature, hatred for Barack Obama fills their minds with irrelevant, pointless rhetoric. After all these years, some still say he’s an "illegitimate president" or a "foreign-born socialist." Or worse.

What does this have to do with investing? Plenty, unfortunately. That’s because his opposition openly talks about a government shutdown this fall and refuses to pass a budget. As we’ve seen time and again, every action (or inaction) on the part of those responsible for our country’s fiscal health can affect us all.

Fortunately, House Speaker John Boehner does not want to relive August 2011, when an S&P downgrade spooked markets around the globe. We don’t know whether he can overcome the power (or perceived power) of the Tea Party caucus.

Meanwhile, much bigger threats lie ahead …

At any moment, the United States could face the unavoidable prospect of a massive Israeli military strike on Iran’s nuclear and missile programs.

Alleged chemical weapons usage by President Bashar al-Assad’s regime could force the U.S. to impose a no-fly zone over Syria.

Egypt is suddenly a powder keg again, thanks to mass protests and a military coup.

Whatever your politics, keeping your money safe is paramount. Ideology is no substitute for intelligent investing. That means facing the world we have, not the world we want.

Between budgetary gridlock, debt-crisis showdown and the latest Middle East developments, now is a time to be very careful with your investments.

The stock market is up 15% so far this year. Will it stay there?

More importantly, can the stock market climb another wall of worry?

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The S&P 500 is at a key point. If the index can break above 1,675, it will still have to re-test the all-time highs above 1,700. Considering the potential whiplash from Washington and the Middle East, I would rather focus on gold and oil.

Gold Ready to Move Higher!

I’ve been short-term bearish on gold (and its proxies like GLD), expecting a pullback to test the $1,240 support. Now, however, the charts point toward a breakout and resumed bull market.

The chart shows the Erlanger Displaced Moving Average Channel (DMA) on a weekly basis.

Below the chart is the DMA Oscillator.

It turns green when price is above the DMA Channel, yellow if price is in the DMA Channel and red when the current price drops below the DMA Channel.

As you can see, GLD is now above the channel with a green oscillator. This could develop into a nicely bullish trend. I’m considering several gold recommendations for my investing and trading services. So, if you’re a subscriber, stay tuned to your e-mail for your next moves to make!

Crude Oil Set to Spike!

Now let’s look at crude oil, using the USO exchange-traded proxy.

The weekly chart below (again graciously provided by Phil Erlanger) shows oil setting up to spike over $120 a barrel.

(Click the image to see it full-size.)

This chart uses the same Erlanger DMA channel and oscillator as the gold chart.

As you can see in the chart, USO has been above the channel and the oscillator green for an extended time. That’s a strong sign the trend will continue.

I’m already taking advantage of this scenario in Global Resource Hunter,Junior Resource Millionaire and Gold and Energy Options Trader and will likely add more positions in the next 10 days or so.

By the way, Global Resource Hunter subscribers just cashed in nicely, keeping 100% of the cash generated by selling a put option on Anadarko Petroleum (APC). I recommended another great APC trade recently, and I’m looking forward to another potential success. You can still join if you act soon. Click here to try out this service now.

Even as Washington dithers and the Middle East prepares for battle, my crack research team sees more opportunities every day. Right now we’re exploring an industrial/resource company with the potential to grow from $8 to the mid-$30s in the next few years. We call this a "Buzz Lightyear Stock" — to infinity and beyond!

Make no mistake: Resource stocks are heating up after a long dormant period. As Europe awakens from a multi-year nap and China’s economy picks up new speed, we’re so excited that even a determined Congress couldn’t stop us!

Good luck and best wishes,

James

Your thoughts on “Washington Whiplash Set to Drive Gold, Oil Higher!”

Dude, there is more to life in these Unsettled States of America then making the right investments. We have a populous that is being attacked by it’s own government, hammer and tong. So maybe gold does go up, it’s nice for the investors who are in the sector, but there is more to the happiness factor besides the rise and fall of manipulated paper gold prices jerked up and down daily by JP Morgan, HSBC and their pals looking the other way at the CFTC.

Your optimistic view of reality is pretty much at odds with the majority, but in a way I do envy you for that. Way less painful.

“…the economy is growing and even the housing market is on the rebound.”

Huh? I suggest you dig a little deeper on your data here. If this is the basis for the remainder of your article, its a shaky foundation. Perhaps you could start with tossing the governments’ reported nominal figures

Speaking of nominal figures, how do you think the average American’s standard of living is doing these days? Maybe a comparison of their wage measured in gallons of gas, or milk, or just about any ‘real world’ item that they require? Growth? Laughable